Stripped-Down Xbox Arriving Late Next Year?

I know there are plenty of rumors about a new Xbox console (Next Xbox), but Microsoft continues to say it is focused on the current Xbox 360. Kinect has sold relatively well and has improved sales of the 360, so this current report could have a grain of truth to it. A new report is saying Microsoft will have a stripped-down Xbox 360 available late next year, which will be powered by an ARM processor and focus on Arcade and Kinect games. The ARM-powered 360 would be priced competitively with the Apple TV, which would mean in the $100 area. The report further goes on to say a true successor to the Xbox 360 would appear later, potentially around the next Kinect revision in 2015. Microsoft, as usual, would not comment on this rumor and did not go further than talking about the new entertainment partnerships and Kinect functionality of the current Xbox 360. A Microsoft rep did say the company is always looking to the future of the platform, but that was the extent of it.